Agency bosses might have case to appeal against rates

High Street agents are being warned that time is running out if they want to contest their business rates over the past five years.

Any business owners who believe they have been charged too much for their rates since the last revaluation in 2005 have until March 31 to appeal. If successful, they could receive rebates worth thousands of pounds.

However, the Valuation Office Agency (VOA) has set a deadline of March 31 for claims, prompting the Forum of Private Business (FPB) to urge firms to consider whether or not their rates bills over the past five years have been set too high.

The FPB believes around 160,000 small businesses have already won backdated reductions in their rates since April 1, 2005, when the current rateable period began. It says many more may be eligible for a reduction without realising it.

There are two main grounds on which businesses can appeal against their rateable value. They can show that they are paying more than neighbouring properties – check at www.voa.gov.uk to find out what neighbouring premises pay and whether or not they have appealed against the amount.

Alternatively, they can prove that there has been a ‘material change’ in their circumstances since 2005. This means something in the business’s immediate surroundings has changed and had a detrimental effect on trade.

Examples include streets being closed off due to roadworks, a high proportion of empty shops or a change in the size or use of the claimant’s premises itself.

Business owners can also take the opportunity to appeal against their forthcoming business rates which come into effect in April.

The FPB’s business rates adviser, chartered surveyor Andrew Bacon, said: “Many businesses will see their rates bills soar in the coming months and years, but they do have a general right of appeal. Following the new rates revaluations they can make one main appeal for the period April 2010 to March 2015.

“However, until March 31 this year they can still appeal against their old valuation if they disagree with it.”